Posted on 12/05/2020 2:09:06 PM PST by RoosterRedux
For any of you active traders or wanna be traders, this is the best video I have come across on the subject of how to make a living at this potentially lucrative and fun way to create income.
I personally have been an investor for about 45 years or so and have always been successful. But that doesn't make me or anyone else a good trader.
Dr Paul explains that being a good trader isn't about being a good long term investor...it's about having a method or system, and sticking with it in a very disciplined way.
It's a numbers game and it can be profitable. But, as Dr Paul explains, it takes a discipline to stick with the system and set of rules through thick and thin. Starting very small and being patient.
I personally have been trading for a while now (stock options in my case). I have made plenty of mistakes before I got down to serious business and developed a system of rules NEVER to be broken. Even now I make plenty of mistakes and watch my emotions run high and low. But I am beginning to make money...slowly, very slowly.
I will share my rules and system if anyone is interested. Your system and rules will be unique to you, but this video helps tremendously in how to apply your system and rules to your area of interest.
As an aside, what makes trading possible nowadays is working an online account. Back when we all used brokers, it wasn't possible unless you trading for a firm who had direct and instant market access. Welcome to the wonderful world of interwebs trading. Trading is now quick and cheap.
Well, now... that can't be right.
ALWAYS been successful? Each and every investment? Never any disappointments?
You use of the absolute "always" renders your statement false by definition.
The system I employ makes millionaires out of anyone who keys off my trades. How’s that you say?
Only this - when I take a position, long or short, simply do the opposite. Works every time!
If you were an investor, you would know that being a successful investor doesn't mean you're never disappointed. It means your account is growing according to plan.
Now that I am trading, I have plenty of days like that. Sometimes I think my computer is possessed.;-)
I take “always” to mean that, at the Bottom Line, the portfolio has always been in the black; not that every last individual trade was a net gain.
Try to have a modicum of grace, and choose meanings that render people’s statements as true.
YOU used the term “Always”.
That is a lie.
Suck it up, liar.
“Not pimping a blog here, Lardass.;-) So, f*ck off and get a real paying job.”
Thanks for the chuckle.
Heheh. That guy spreads cheer where ever he goes.
I’ve always been a 401k type investor; all about the long haul; pick the fund spread and let it all ride.
But I took advantage of the big dip last spring to move a wad o’cash into DAL and LUV. Stepping into unfamiliar territory kinda felt like leaping off the high dive, but it has proved to be a good move. However, it seemed SO obvious — a pair of $60-ish stocks trading in the $25-$30 range? As if these big carriers weren’t going to recover? Who wouldn’t bite?
So, call that a “Kindergarten” buy for it being an obvious move, maybe?
But if I want to do more, there’s not a ton of things out there that are so obviously positioned for gains. Now I’m looking at more difficult to assess moves that would require selling out of things that are growing to move some or all of the funds into things that are — with any luck at all — growing faster.
Looking forward to the video.
Hope you like it. This guy is good.
Read later.
Bttp
Sooo, I finally got headroom to watch this video all the way through a couple of times and took notes.
Ultimately it’s math.
Set your trading metrics to net 2:1 payoffs, do the research to be right more than half the time, never risk more than 2% on any single trade, and never risk more than 4% in any one sector.
What comes out of this is a diversified spread of holdings trading 2-5 times a month at decent growth.
I’m way too heavy into UCTT right now. It’s been killing it lately, so it’s hard to exit with all the analysts saying, Buy, Long, Outperform... Still, basis a 2% cap on individual holdings to overall portfolio, those positions need trimming.
The big question is whether to keep funding retirement accounts that are going to get taxed later at whatever rate my forced distributions determine, or fund them only minimally, and make my boldest moves with ABT (Already Been Taxed) money in another account. My sneaky gut says the latter, although I’m doing OK inside my IRA, too; not letting the meat loaf. Bought DAL and LUV on their dregs last March, so those are strong positions, now; well into 2:1 payout territory.
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